Waltersmith Completes Phase 1 of Ibigwe Field Development

Chika Amanze-Nwachuku

Waltersmith Petroman Oil Ltd, a wholly indigenous operator of the Ibigwe marginal field, has successfully completed the first phase of the oil field development.

The Ibigwe field, located in the Oil Mining Lease (OML) 16, was awarded to Waltersmith Petroman in 2003, with a farm-in agreement with the Shell Petroleum Development Company (SPDC) signed in April 2004.

Currently, the field produces 4,000 barrels of oil per day (bpd) and expects to inch higher to 7,000 bpd after the ongoing production optimisation process is concluded.
Chairman/Chief Executive Officer (CEO) of Waltersmith, Mr. Abdulrazaq Isa, who briefed journalists on the company’s field development programme yesterday, in the company of the vice-chairman, Mr. Danjuma Saleh, and other senior management members, said Waltersmith invested about $180 million in a five-well drilling and one work-over campaign, which included the commissioning of a 15,000 bpd-capacity flow station.

Isa said the first oil from the Ibigwe field was attained in March 2008, after initially putting in place an early production facility, which included a 20,000-barrel capacity crude storage tank.

He said: “In 2009, Waltersmith embarked on the first phase of its drilling campaign with the objective of appraising and developing the shallow reservoirs in the C and D sands.
“After obtaining the relevant approvals from the Department of Petroleum Resources (DPR), the company engaged the services of reputable international and local oil service companies, including KCA Deutag, Schlumberger, BJ Services, Baker Hughes, Matpatson, Atlantic Fluids, etc, for the exercise, which culminated in the drilling and completion of two appraisal and development wells.”

He continued: “Ibigwe-Well 4 appraisal was drilled and completed in the D2.0 and C4.0 sands as a vertical well at the crest of the structure, while Ibigwe-5, a development well, was drilled with a 133-metre horizontal section in the C2.0 sands to optimise the production of heavy and high viscosity crude in the field.

“Both wells were drilled 2,533 metres and 2,408 metres respectively. Due to the high viscosity, low gas to oil ratio and low API (American Petroleum Institute) gravity oil characteristics of the Ibigwe field, the company initiated a gas lift operation with installation of a 200hp, 3 –stage compressor to gas lift the wells, which further boosted production to 2,200 bpd.”

Isa said the operation also enabled the utilisation of the associated gas resources available at the field, which otherwise would have been flared, thus contributing significantly to the Federal Government’s no-gas flare policy.

He said following the approval by the DPR, the company commenced the phase of the drilling campaign and the development of the field with the planned work-over of Ibigwe wells 1 and 2 and the drilling of three additional wells.

“The Ibigwe-2 suffered a blow out at the summit of the well completion during the work-over to produce the gas reservoir in the C3.0 sand. The American company, Boots and Coots, was immediately engaged to carry out a surface intervention to quell the fire stemming from the blow out.

“However, the effort was unsuccessful and the company commenced the drilling of a relief well to kill the blow out well. Despite the seeming setback, the company continued its field development by drilling and completing four wells in 2012, three of which were successful (Ibigwe 1, 6 and and one was unsuccessful (Ibigwe 7)”, he added.

Furthermore, he said Ibigwe-6, which is predominantly a gas well, currently produces about two million standard cubic feet (mscf) of dry gas, thus increasing the gas available for the gas lift operations.

“The well was drilled to 2,487 metres and completed in C7.0 sand in 39 days. Ibigwe-8 was drilled as a development well to a total depth of 2,424 metres and completed as a dual producer in the C4.0 and C1.0 reservoirs in 60 days.

“Both completed intervals have the capacity to produce about 2,000 bpd. Ibigwe-1 was re-entered and recompleted in the C4.0 and C6.4 sands in December 2012.
“Both intervals are producing and are presently undergoing statutory testing, with expected production of 1,800 bpd,” he stated.

He disclosed that the Ibigwe-7 was the second well drilled at the crest of the F-sand series and it turned wet. The upgrade and commissioning of the 15,000 bpd flow station, he added, were completed in 2012.

“This involved the installation of low and high pressure separators, an additional gas compressor, oily water theatre and expedition pumps,” he said.

Isa noted that the company achieved a milestone cumulative production of 2.5 million barrels in 2012, adding that the field currently produces 4,000 bpd, with a forecast production for Ibigwe field put at 7,000 bpd after the completion of the ongoing production optimisation process.

The CEO also noted that the company enjoys excellent support from the SPDC, its farmor, with whom it maintains a crude handling agreement and crude sales and purchase agreement.

On the future plans by the company, he said over the next 24 months, it intends to undertake a full evaluation of the field by re-interpreting available seismic data or acquiring new seismic data from the concession area with a view to identifying potential leads for exploration, appraisal and development.

He further disclosed that the company was evaluating the feasibility of installing a 5,000-bpd capacity at Ohaji-Egbema in Imo State, where the Ibigwe field is located, to provide an alternative income stream, especially in the wake of very frequent disruptions in export schedules caused by pipeline vandalism.

According to him, based on the feasibility study undertaken by the company, the cost of a proposed refinery project would be in the range of $40 million.

On corporate social responsibility, he said the company was the only operator among seven others producing marginal fields that has met more than 70 per cent of the agreement it reached with its host communities, under a Global Memorandum of Understanding (GMoU) it signed with the communities.

He added that Waltersmith was the only marginal field operator that made its host communities shareholders in the company.
Waltersmith Petroman is a member of the ND Western Consortium that invested $600 million to acquire 45 per cent equity in OML 45 sold by Shell and its multinational partners, Total and Agip, last year.

http://www.thisdaylive.com/articles/waltersmith-completes-phase-1-of-ibigwe-field-development/142667/

Mmmh! isa and the danjumas again

nice development since the host community is benefiting from it

What kind of rubbish is this. isa and danjuma drilling oil in Imo state Rochas almajiri corperation may be the worst thing to befall ndi Igbo

Imo and Abia states are not feeling the impact of oyel and gas found in their states. Of course i'm aware that Imo could have been receiving a much bigger derivation receipt if not for the wuru-wuru of the owners of Nigeria and their southern helpers in slicing Egbema in half; but despite this, i feel they should have been much better off financially than is presently the case......though bad governance in the two states over the years can be said to have played a small part in their plight (eg- Abia state with the two Orjis'), i should expect that yearly budgets from these two so-called oyel producing states should be at least 200 billion naira. I believe if Rochas had more of a free hand to manage Imos' oyel and gas, that they would be in a much better position.....i'm not so sure about Abia though; they seem to have ran out of ideas over there.

Dibiachukwu: What kind of rubbish is this. isa and danjuma drilling oil in Imo state Rochas almajiri corperation may be the worst thing to befall ndi Igbo

^^^Was the block awarded during Rochas tenure?; also, i don't think governors have much of a say on who and who owns oyel blocks in their states.....i could be wrong though.

All things considered, let's just be happy for the positive economic news coming out from Imo.

choi! Ndi a.wusa egbu go mmadu na nijeriya! Obu naani ndi ugwu ga enwe ala mmanu di na obodo a? Odikwa serious!

Ibigwe Flow Station is one of the cleanest (if not the cleanest) flow stations in Imo State... Thank God for the Progress!!!

I don't understand what oil drilling companies that are not Igbo owned are doing in Alaigbo. Egbema really? How can nama come to your community and start drilling oil out of your ancestral land? Of what benefit is that to you?

@DIBIACHUKWU I UNDERSTAND UR CONCERN BUT THE EGBEMA GUYS ARE NOT STUPID; HAVE YOU WONDERED WHY IT IS THE ONLY MARGINAL OPERATOR THAT HAVE MET 70% OF IT'S AGREEMENT WITH THEIR HOST COMMUNITY? DO YOU KNOW HOW MANY IMO YOUTHS HAVE BEEN EMPLOYED, DO YOU KNOW ITS CONTRIBUTION TO THE STATE REVENUE? DO YOU KNOW THE EFFECT OF THEIR CURRENT AND FUTURE INVESTMENTS ON IMO STATE? MY BROTHER IT WAS SHELL PETROLEUM THAT HANDED OVER THE IBIGWE FIELD TO WALTERSMITH IN PARTNERSHIP WITH FEDERAL GOVT IN 2008 NOT ROCHAS. IT IS GOOD THEY INVEST IN IGBOLAND AFTERALL IGBOS ARE ALREADY DEVELOPING THEIR LANDS. NDEWO!!!

We should not forget that a 15000 barrels of oil per day flow station have been completed and the feasibility studies for the building of a new refinery in the area completed. IT IS A WONDERFUL DEVELOPMENT.

When Shell was in charge of that field it didn't do much to optimize production unlike what an indigenous company like waltersmith is doing. 180 million dollar is not a small money. I commend this huge investment. Northerners should continue blowing up their economy to rubbish since they now behave like people without brains.

THE GOOD NEWS IS THAT MANY MORE INVESTMENTS ARE STILL COMING TO IGBOLAND.

The managing director of Walter Smith petroman has spoken on his merits from ibigwe. Am son of the soil of obitti in ohaji\egbema LGA of IMO state where imo oil is being explored, He spoke on his merits from the community and briefly said a little on community benefits, But I did not hear him spoke on empowering the youth and even employment because he knew he did notting based on this necessary areas. I am a graduate of petroleum engineering but i've applied time without number but the company situated 3 metre to my village could not do something till now. My people obitti community will react since they fail to abuduct nigeria oil mining law. "Obitti will endanger lives as regard to Walter Smith" I reserve my comment.(engrjoseph.ezenwere@yahoo.com)

Dibiachukwu: I don't understand what oil drilling companies that are not Igbo owned are doing in Alaigbo. Egbema really? How can nama come to your community and start drilling oil out of your ancestral land? Of what benefit is that to you?

What a disgusting display of racism and tribalism - calling a fellow human a "nama"? I know you are still pained by the historical happenstance of 1967 but the people who are directly responsible are now dead, perhaps you could have directed your vitriol to them? You call people investing $ 180 M dollars into a business with the biggest oil services companies as customers "nama", what do you think you who is yet to invest $ 10 is supposed to be called? You like their $ 180 M but you don't like the "animals" who have so much money?? LMAO!

The use of Waltersmith as a front is a such deceitful mechanism setup by British and goons from northern region of Nigeria to perpetually suck Ndigbo dry and dead. This is one thing Yoruba people will not allow in Yoruba land where two goons in Mallam Abdulrazaq Isa and Mallam Danjuma Salah from northern region of Nigeria parading as CEO and Vice-Chairman of Crude oil company, Waltersmith, sucking Alaigbo to death.

Waltersmith, Mallam Abdulrazaq Isa and Mallam Danjuma Salah should be told to leave Igbo land peacefully or hell will be let loose.

DerideGull: The use of Waltersmith as a front is a such deceitful mechanism setup by British and goons from northern region of Nigeria to perpetually suck Ndigbo dry and dead. This is one thing Yoruba people will not allow in Yoruba land where two goons in Mallam Abdulrazaq Isa and Mallam Danjuma Salah from northern region of Nigeria parading as CEO and Vice-Chairman of Crude oil company, Waltersmith, sucking Alaigbo to death.

Waltersmith, Mallam Abdulrazaq Isa and Mallam Danjuma Salah should be told to leave Igbo land peacefully or hell will be let loose.

LWKMD! Why did you have to bring Yorubas into your painful life again?? Well, I am sure they will be more than happy to leave if either Nigeria breaks up into sovereign countries or regions and you can afford to PAY the FULL PRICE for their company! Why not? If they invest $ 180 M why you are lazying around, you bet you will not be paying them $ 180 M for their company but at least $ 1.8 B because they will factor in the reserves they are letting go, the future value of their company, etc. Now dede, can anyone in your generation afford to pay even $ 1 M, not to talk of $ 1.8 B??

CyberG:

LWKMD! Why did you have to bring Yorubas into your painful life again?? Well, I am sure they will be more than happy to leave if either Nigeria breaks up into sovereign countries or regions and you can afford to PAY the FULL PRICE for their company! Why not? If they invest $ 180 M why you are lazying around, you bet you will not be paying them $ 180 M for their company but at least $ 1.8 B because they will factor in the reserves they are letting go, the future value of their company, etc. Now dede, can anyone in your generation afford to pay even $ 1 M, not to talk of $ 1.8 B??

You have shown to be irredeemable ignorance. I read that most crude oil companies had to abandon their drilling sites for safety during mere police action in eastern region. Republic of Igbo land will gladly help you, Waltersmith, Mallam Abdulrazaq Isa and Mallam Danjuma Salah to safely evacuate their premises.

Dibiachukwu: What kind of rubbish is this. isa and danjuma drilling oil in Imo state Rochas almajiri corperation may be the worst thing to befall ndi Igbo

Does it really matter who is drilling the oil or is you and your people reaping the benefits in form of taxes and economic development that matters?

While other folks around the world pray for investments and economic development, all you people see is the tribe of the investments and not the economic opportunities you and your people stand to gain and benefit

Can you people exist without bigotry, hate and tribaslim?

DerideGull:


You have shown to be irredeemable ignorance. I read that most crude oil companies had to abandon their drilling sites for safety during mere police action in eastern region. Republic of Igbo land will gladly help you, Waltersmith, Mallam Abdulrazaq Isa and Mallam Danjuma Salah to safely evacuate their premises.

I think you are the one being ignorant and in fact lying a wee bit. It makes sense of course for any sensible human and company to stand aside in conflict, it does not mean "abandonment" like you mentioned. One of the reasons for the Police Action was actually the oil which was not in Iboland at that time but in the land of the minorities of the time. The only people who could have asked that foreign oil companies leave was Nigeria but they didn't and in fact at some point, some of the foreign companies reached a compromise by paying a little sum to Biafra while continuing their oil exploration business. This is clearly a talk for another topic and another day but the point is that neither Igboland or Nigeria is in any position to tell any company to just evacuate and leave! You must be willing and able to buy their assets at whatever price they are willing to sell, and "abandoned company" or "land grabbing" as an avenue to get rich on the investment and sweat of others will never work! If you want the so called "enemies" to leave, you'd better go and start saving up for the $ 1.8 B NOW or you can approach any bank willing to guarantee you that sum of money to buy otherwise, you are on a long thing! They will continue operations and hire qualified people from every corner of Nigeria and outside be it Hausa or Yorubas, and there's nothing you could ever do about it!

CyberG:

I think you are the one being ignorant and in fact lying a wee bit. It makes sense of course for any sensible human and company to stand aside in conflict, it does not mean "abandonment" like you mentioned. One of the reasons for the Police Action was actually the oil which was not in Iboland at that time but in the land of the minorities of the time. The only people who could have asked that foreign oil companies leave was Nigeria but they didn't and in fact at some point, some of the foreign companies reached a compromise by paying a little sum to Biafra while continuing their oil exploration business. This is clearly a talk for another topic and another day but the point is that neither Igboland or Nigeria is in any position to tell any company to just evacuate and leave! You must be willing and able to buy their assets at whatever price they are willing to sell, and "abandoned company" or "land grabbing" as an avenue to get rich on the investment and sweat of others will never work! If you want the so called "enemies" to leave, you'd better go and start saving up for the $ 1.8 B NOW or you can approach any bank willing to guarantee you that sum of money to buy otherwise, you are on a long thing! They will continue operations and hire qualified people from every corner of Nigeria and outside be it Hausa or Yorubas, and there's nothing you could ever do about it!

You keep flaunting your ignorance lavishly on the historical facts about Nigeria. Since you have shown daftness on the history of crude oil exploration in Nigeria, there is no ground left for this debate. Please go do some meaningful read up.

DerideGull:

You keep flaunting your ignorance lavishly on the historical facts about Nigeria. Since you have show daftness on the history of crude oil exploration in Nigeria, there is no ground left for this debate. Please go do some meaningful read up.

When you fail to make sense, you resort to abuse...this is how typical emotional people like dede and his kins behave! You can cry here till you are blue in the face, it does not change the fact of your loss in 1967 and in 2013, the same people you are crying about are raking in billions of naira while no one listens to you cry baby! Hahahaa...old man dede in pampers crying....wen wen wen wen! LWKMD!

CyberG:

When you fail to make sense, you resort to abuse...this is how typical emotional people like dede and his kins behave! You can cry here till you are blue in the face, it does not change the fact of your loss in 1967 and in 2013, the same people you are crying about are raking in billions of naira while no one listens to you cry baby! Hahahaa...old man dede in pampers crying....wen wen wen wen! LWKMD!

No, I am not in the mode of dishing out insults but will not tolerate goofiness. I really meant what I wrote about your despicable shortfalls on the knowledge of crude oil exploration in Nigeria. Shell D’arcy Headquarter was at Owerri until the end of civil war when it was moved to Lagos. When crude oil was struck in commercial quantity in Olobiri in 1956, this discovery was followed equally by the oil fields at Owaza in Asa and Bori in khana.

DerideGull:


No, I am not in the mode of dishing out insults but will not tolerate goofiness. I really meant what I wrote about your despicable shortfalls on the knowledge of crude oil exploration in Nigeria. Shell D’arcy Headquarter was at Owerri until the end of civil war when it was moved to Lagos. When crude oil was struck in commercial quantity in Olobiri in 1956, this discovery was followed equally by the oil fields at Owaza in Asa and Bori in khana.

Slowly but surely, the real reason for your stance is being revealed. So you have been harbouring disdain about crude oil since we prevented you from running off with the zone, oil and all, ko?

ndu_chucks:

Slowly but surely, the real reason for your stance is being revealed. So you have been harbouring disdain about crude oil since we prevented you from running off with the zone, oil and all, ko?

You are full of it. I have few uses for crude oil. There are people such as you determine to kill because of crude oil.

Let every investor come into Igboland. This is what we wish for. We need this even though the economy of the East will be driven by international commerce, industry and elaborate tax system. Besides oil, the region has the highest diaspora remittances in sub-saharan Africa. A repatriation of capital, investments and skills in a new region/republic will after initial few years of shocks, give way to a fast emerging Singapore-like economy.
There is abundant human resources providing ready academic and artisanal skill and market for consumer goods and services-refined petrol included. The region is small and contiguous, making it easy to spread infrastructure and product channels.

Robust infrastructure and investments will help reduce crime rates in a zone that has witness systematic neglect for successive regimes since after the end of the civil war. Even Dangote has avoided SE and SE for investments perhaps because of its civil war history or other factors best known to him and his advisers.

Please bring on the investments.

Kponkwem: Let every investor come into Igboland. This is what we wish for. We need this even though the economy of the East will be driven by international commerce, industry and elaborate tax system. Besides oil, the region has the highest diaspora remittances in sub-saharan Africa. A repatriation of capital, investments and skills in a new region/republic will after initial few years of shocks, give way to a fast emerging Singapore-like economy.
There is abundant human resources providing ready academic and artisanal skill and market for consumer goods and services-refined petrol included. The region is small and contiguous, making it easy to spread infrastructure and product channels.

Robust infrastructure and investments will help reduce crime rates in a zone that has witness systematic neglect for successive regimes since after the end of the civil war. Even Dangote has avoided SE and SE for investments perhaps because of its civil war history or other factors best known to him and his advisers.

Please bring on the investments.

I am not sure you are aware of the reputation issues of the SE, have you seen the latest US Department of State travel advisory? So you want any company to go and commit $ 100 M to the same place their governments are advising people not to visit with $ 2,000 ? Well, what objective data shows the SE receives the highest remittance from foreign countries? Point to the statistics from MoneyGram or WesternUnion or is this just one of those things were "official statistics" is declared from your personal house and based on your "feel good" requirements?

Kponkwem: Let every investor come into Igboland. This is what we wish for. We need this even though the economy of the East will be driven by international commerce, industry and elaborate tax system. Besides oil, the region has the highest diaspora remittances in sub-saharan Africa. A repatriation of capital, investments and skills in a new region/republic will after initial few years of shocks, give way to a fast emerging Singapore-like economy.
There is abundant human resources providing ready academic and artisanal skill and market for consumer goods and services-refined petrol included. The region is small and contiguous, making it easy to spread infrastructure and product channels.

Robust infrastructure and investments will help reduce crime rates in a zone that has witness systematic neglect for successive regimes since after the end of the civil war. Even Dangote has avoided SE and SE for investments perhaps because of its civil war history or other factors best known to him and his advisers.

Please bring on the investments.

^^^My brother, if Dangote feels he can't invest in the South East, it's his money to do as he pleases. You should understand the 'co-operation' and 'understanding' his people have had with certain others would have played no small part in shaping his perception on where to invest in Nigeria! He doesn't feature in my plans for SE economic development so forget him!

What we need to do is to attract more Ndigbo and their business associates to invest in the South East, and leave others who feel more comfortable to invest elsewhere!

Oil flow station in Imo state?
Oh no, Justice Mamman Nasir must have forgotten to include it as part of River state. Damnnn, what a mistake

Njaba basin is the deepest inland oil reserve in Nigeria and it's totally untapped. Imo is the Saudi Arabia of Nigeria and there's no drilling going on. Our people should make sure that conditions are right, unlike what happened in the lower delta.

Drill baby drill - drill baby drill!! That should be the chant before an opportunity to cash in on oil before its value declines to a point where it is no longer economically viable.